Many of you will be receiving your second Stafford loan disbursement, which will be applied toward your upcoming spring semester within the next few weeks. The sad thing is for many it won’t be enough to cover all your expenses.
If you are seeking alternative means to finance your second semester (click here).
Also, this is a good time to remind you to file your 2009/2010 FAFSA immediately after the new year hits! If you haven’t gotten it already, the new FAFSA eBook for the 2009-2010 FAFSA is out and available. It’s a comprehensive line by line guide to the new FAFSA that becomes available in just TWO DAYS, so make sure you grab a copy of the eBook.
Consolidation is used as a debt management tool and is ideal for those who are having difficulty making their monthly payments. It is designed to extend out your loan terms and minimize your monthly payment. Because of the additional years, consolidation may significantly increase the total cost of repaying the loan due to the additional amount of interest which will accrue.
Another possible disadvantage is you may lose out on borrower benefits such as interest discounts and rebates that your current lender provides. Many consolidation lenders do not offer these benefits.
And finally, you may hit the consolidation market at the wrong time. If you happen to consolidate your federal loans when the interest rate is high than you are stuck with that rate. You can not consolidate your loans again at a later date should the interest rate drop. You are stuck with the rate at the time of your consolidation. It is not like refinancing a mortgage where you can refi an infinite amount of times to try and score the best interest rate.
Five most recent student loan consolidation blog posts:
You may have heard it’s a good idea to start your college career at a Community college to save money before transferring over to a more expensive four-year school. In fact, I’ve recommended it, but the other side of that coin is needing to be aware of the articulation agreement your Community college has with the four-year college you are interested in.
An articulation agreement simply states which courses will transfer to your four-year college. I don’t need to underscore the importance of this factoid. No one wants to be wasting their time or money on a class that won’t transfer. You can discuss any concerns you have about transfer courses and credits with the college registrar at the college you are transferring to.
So there is outside the box thinking and then there is OUTSIDE the box thinking.You want money for school, ask for it.
You’re never too young to enter the world of guerrilla style tactics to get what you want.In fact, the younger you start the better.People are more likely to help you when you’re younger.At least that’s what I’ve found.
Sites like collegedegreefund.com and smartypig.com allow students to basically beg for cash.You set up a profile with your target goal and what it’s for.For our example it would be for College Tuition, say $20,000.Then you can send out your link to family, friends, companies, or whomever.Let the world know what your goal is.You can even get an icon for your myspace or facebook page.Additionally, you will accrue interest on your savings.
People love to help kids that are helping themselves.But you may want to leverage your efforts by applying for scholarships as well.At scholarshippoints.com you can enter to win for FREE.The only requirement we have, in order to be eligible, is you must be enrolled in a Title IV eligible school in the U.S., which most are.
We give away thousands of dollars each month ranging from $1,000 all the way up to 10K!You can accrue points too to increase your odds of winning one of the monthly scholarships.
Whether you are viewed as a dependent or independent student depends on several factors. If one of the following applies you are an independent student for the 2009-10 academic year.
- You were born before Jan 1, 1986.
- You are or will be enrolled in a master’s or doctoral degree program (beyond a bachelor’s degree) at the beginning of the 2009-2010 academic year.
- You’re married on the day you apply (even if you are separated but not divorced).
- You have children who receive more than half their support from you at the time you apply and thru June 30, 2010.
- Both your parents are deceased, or you are (or were until age 18) a ward or dependent of the court.
- You are currently servicing on active duty in the U.S. Armed Forces for purposed other than training.
- You’re a veteran of the U.S. Armed Forces.
If none of these criteria apply you are a dependent student.
The Department of Education has announced a new service for the coming year – FAFSA on the Phone.
What exactly is FAFSA on the Phone?
FAFSA on the Phone is a non-Web, paperless alternative to completing the Free Application for Federal Student Aid (FAFSA). With the assistance of Federal Student Aid Information Center (FSAIC) customer service representatives (CSRs), students are given the flexibility to complete the FAFSA by relaying their information over the telephone.
Will I speak with a real person or an automated system?
With FAFSA on the Phone, you will speak with an actual person, a FSAIC CSR. This one-on-one interaction allows for seamless FAFSA completion.
Who is this service geared toward?
FAFSA on the Phone provides students who have limited or no access to the Internet with a convenient option to complete the FAFSA. This service is also aimed at students who face pressing state and federal deadlines and have no other option available to complete the application.
How does FAFSA on the Phone work?
Contact FSAIC: 1-800-4-FED-AID (1-800-433-3243)
Sun: Closed
Mon–Fri: 8:00 a.m.–12:00 midnight Eastern Time
Sat: 9:00 a.m.–6:00 p.m. Eastern Time
Indicate to CSR that you would like to fill out your FAFSA over the phone. Have the necessary information ready.
CSR inputs data into online FAFSA and submits for processing. The process generally takes 25–30 minutes. CSR will supply you with a confirmation number for future use.
You will receive the Student Aid Report (SAR) in the mail 7–10 days after you apply. Review your information on the SAR for accuracy and make changes if necessary.
After reviewing your SAR, you (and your parent, if appropriate) must sign and mail your SAR as soon as possible to the address provided on the SAR.
This questions asks about the highest level of education your parent(s) have achieved. If you are the first one in your family to go to college, you may be eligible for “first in the family” type scholarships.
There is an article from the Boston Globe about a young soldier to be who died right before his tour in Iraq was set to begin. His name was Ian McVey. The article focused on his student loans that he left behind….he had both federal and private loans.
His federal loans were forgiven after his death…as all federal loans are, whether you are in the military or not. His private loans with Sallie Mae, will not be forgiven. Why? Because they are private loans, and it clearly states in the promissory note that the cosigner on the loan will be responsible for this loan if the primary borrower is not able to pay. Ian McVey’s parents wrote a letter to Sallie Mae, hoping that they would forgive their son’s 53k debt, so that they would not be burdened with that debt. No surprise that Sallie said no…but it was in the way they said no that has me heated. (again, not surprised)…
Ian’s dad took the time to write a very personal and heartfelt letter to Sallie Mae. Stamped it, sent it off, and waited for a reply. Sallie Mae sent back a computer generated letter, with no name on it, stating that the loans would not be forgiven and he owed them 53k. You would think with all the bad press Sallie has gotten in the last year they would TRY to clean up their act??? Shouldn’t they have at least one person in their monstrous corporation that can write these letters, and be a contact for these families that are grieving….and burdened financially? I am not saying that Sallie should forgive those loans…because legally they do not have to…but why didn’t one person take the time to answer this Dad? What do you think?
This is the third and final installment of questions I should ask, which I set up based on both student feedback and my own industry knowledge.I’m hoping you will find this beneficial on your quest to finding the right school for you.
Do I meet the admissions requirements?
Inside the numbers: Schools don’t only review the number of classes you take in High School (i.e. 4 English, 3 Math, 2 foreign language, etc) but also the quality of those classes.If you took standard level courses and are competing for a seat against a student who took college or AP level classes the pendulum will obviously swing in their favor. The SAT or ACT test is also a common requirement.It goes without saying that scoring well on one of these tests is extremely important.However, the admissions process does go beyond grades and course selection.Extracurricular activities go a long way and help paint the picture of a well rounded student.Year book committee, tennis team, band member, student government are all excellent examples of this.Check with the school’s admissions office or website for specific requirements.
Plan B: For those students whose grades are questionable or have sub par SAT or ACT scores, and are denied admission into a choice university, you may want to enroll in a two year community college.Community colleges offer an opportunity to pursue higher education to all students who obtained a high school diploma, GED Certificate, or have demonstrated the “Ability to Benefit.”Then, after you make the marks, you can transfer over to that four year school.
What are the school’s job placement rates?
Each school has data on the percentage of students who are placed in jobs relevant to their course of study.I don’t need to explain how important this statistic is; obviously the higher the better.It’s a good indication of the quality of the school’s degree programs and also the partnerships they have with companies in the region.Many colleges help place students into summer jobs/internships while they are enrolled in school.Consequently those connections made during summer internships can prove quite beneficial down the road and help inflate the job placement number.
There is an article from the Boston Globe about a young soldier to be who died right before his tour in Iraq was set to begin. His name was Ian McVey. The article focused on his student loans that he left behind….he had both federal and private loans.
His federal loans were forgiven after his death…as all federal loans are, whether you are in the military or not. His private loans with Sallie Mae, will not be forgiven. Why? Because they are private loans, and it clearly states in the promissory note that the cosigner on the loan will be responsible for this loan if the primary borrower is not able to pay. Ian McVey’s parents wrote a letter to Sallie Mae, hoping that they would forgive their son’s 53k debt, so that they would not be burdened with that debt. No surprise that Sallie said no…but it was in the way they said no that has me heated. (again, not surprised)…
Ian’s dad took the time to write a very personal and heartfelt letter to Sallie Mae. Stamped it, sent it off, and waited for a reply. Sallie Mae sent back a computer generated letter, with no name on it, stating that the loans would not be forgiven and he owed them 53k. You would think with all the bad press Sallie has gotten in the last year they would TRY to clean up their act??? Shouldn’t they have at least one person in their monstrous corporation that can write these letters, and be a contact for these families that are grieving….and burdened financially? I am not saying that Sallie should forgive those loans…because legally they do not have to…but why didn’t one person take the time to answer this Dad? What do you think?
Many of you will be receiving your second Stafford loan disbursement, which will be applied toward your upcoming spring semester within the next few weeks. The sad thing is for many it won’t be enough to cover all your expenses.
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